Care.com (NYSE: CRCM) and Liberty Tripadvisor (NASDAQ:LTRPA) are both small-cap technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.
Earnings and Valuation
This table compares Care.com and Liberty Tripadvisor’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Care.com||$161.75 million||3.58||$7.04 million||$0.08||240.63|
|Liberty Tripadvisor||$1.53 billion||0.46||$21.00 million||$0.10||94.00|
Liberty Tripadvisor has higher revenue and earnings than Care.com. Liberty Tripadvisor is trading at a lower price-to-earnings ratio than Care.com, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Care.com has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Liberty Tripadvisor has a beta of 2.03, meaning that its share price is 103% more volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Care.com and Liberty Tripadvisor, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Care.com currently has a consensus price target of $16.00, suggesting a potential downside of 16.88%. Given Care.com’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Care.com is more favorable than Liberty Tripadvisor.
This table compares Care.com and Liberty Tripadvisor’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
74.3% of Care.com shares are held by institutional investors. Comparatively, 86.1% of Liberty Tripadvisor shares are held by institutional investors. 24.7% of Care.com shares are held by insiders. Comparatively, 4.0% of Liberty Tripadvisor shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Care.com beats Liberty Tripadvisor on 9 of the 14 factors compared between the two stocks.
Care.com, Inc. is an online marketplace for finding and managing family care. As of December 31, 2016, the Company had 22.8 million members, including 12.9 million families and 9.9 million caregivers, spanning 19 countries. Its consumer matching solutions allow families to search for, qualify, vet, connect with and select caregivers. It also provides caregivers with solutions to create personal profiles, describe their skills and experience, and otherwise differentiate and market themselves in a fragmented marketplace. In addition to consumer matching solutions, the Company offers its members products and services to facilitate their interaction with caregivers. It serves employers by providing access to certain of its products and services to employer-sponsored families. In addition, it serves care-related businesses, such as day care centers, nanny agencies and home care agencies, willing to market their services to its care-seeking families and recruit its caregiver members.
About Liberty Tripadvisor
Liberty TripAdvisor Holdings, Inc. is a holding company. Through its interests in subsidiaries and other companies, the Company is primarily engaged in the online travel research and online commerce industries. The Company’s subsidiaries include TripAdvisor, Inc. (TripAdvisor), which owns and operates a portfolio of online travel brands, and BuySeasons, Inc., which owns and operates BuyCostumes.com and the Celebrate Express (BuySeasons) family of Websites. TripAdvisor is a travel site focusing on helping people around the world to plan and book a trip. TripAdvisor manages its business in two segments: Hotel, including click-based advertising, display-based advertising and subscription-based advertising, and Non-Hotel, including its attractions, restaurants and vacation rental businesses. BuySeasons is an online retailer and supplier of costumes, accessories, seasonal decor and party supplies.
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